Forget Altcoins: Wolfe Research Highlights Crypto-Related Stocks as the Best Play in H2 2025
By Tanaya Macheel | Published July 7, 2025, 2:07 PM EDT
As the cryptocurrency market continues to evolve, investors looking for opportunities in the second half of 2025 may want to turn their focus away from altcoins and toward crypto-related stocks, according to Wolfe Research.
No Sign of Altcoin Rally This Year
Historically, when Bitcoin (BTC) posts new all-time highs, capital tends to flow out of the flagship cryptocurrency and into altcoins—smaller, higher-risk digital assets. Known as the "alt season," this trend has often created substantial gains for altcoin holders.
However, Wolfe Research’s recent analysis reveals that despite two Bitcoin record run-ups this year, altcoins have yet to experience their anticipated rally. In fact, the median altcoin tracked by Wolfe is down 32% year-to-date, a stark contrast to equities, which are trading at new highs.
Wolfe analyst Read Harvey noted in a Wednesday report, “It has been our call for months that investors should stick to Bitcoin until we see life return to altcoins. That life has yet to come.”
Major Altcoins Are Struggling
Popular altcoins including Ether (ETH), Dogecoin (DOGE), Solana’s SOL token, and Cardano’s ADA have all posted double-digit losses in 2025. Binance Coin (BNB) has declined by 6%, while XRP stands out as the exception with an 11% gain during the same period.
Harvey expressed surprise at the persistent lack of interest in speculative altcoins despite overall market strength. "There has been a complete lack of desire to own speculative altcoins even as the market rallied to new highs and interest rates have declined," he said.
Crypto Stocks Outperform Bitcoin
Meanwhile, crypto-related equities have outpaced Bitcoin’s gains since the S&P 500 reached its closing low on April 8. The Bitwise Crypto Industry Innovators ETF (BITQ), which tracks leading crypto stocks, is up 76% since that market low, while Bitcoin’s price increased 38%.
Key Bitcoin mining companies such as Cipher Mining, Terawulf, Riot Platforms, and Marathon Digital Holdings (MARA) have all either surpassed or are approaching their 200-day moving averages, signaling potential upside momentum. Wolfe Research expects these stocks to retest their November 2024 levels in the coming weeks.
Harvey emphasized this divergence, stating, "While holders of altcoins like Dogecoin may be hurting, there’s no sign of pain for those playing the space through stocks, which we continue to recommend sticking with."
Looking Ahead
With altcoin enthusiasm subdued and the broader stock market showing strength, Wolfe Research recommends investors focus on crypto stocks as the best vehicle to gain exposure to the crypto space through the second half of 2025. This advice comes amid expectations that Bitcoin may break out to new records following a consolidation phase, though the altcoin market remains uncertain.
More Coverage on Crypto Investing
- Investors expect Bitcoin to break out to new records in H2 2025 following consolidation
- Why Bitcoin isn’t rallying despite billions in ETF inflows
- How recent stablecoin regulation gives Treasury new tools to fund the U.S. deficit
Michael Bloom of CNBC contributed to this report.